Building vs. Buying: A Comprehensive Guide to Home Ownership in New Hampshire

Deciding between building or buying a home in New Hampshire is a significant step towards your dream residence. Both options come with their own set of advantages and considerations. In this guide, we’ll delve into the details of the average costs, factors to consider, and financing options for building a home in the Granite State.

Average Cost of Building a House in New Hampshire

The average cost to build a house in New Hampshire hovers around $150 per square foot, excluding additional expenses such as land costs, permit fees, and excavations. This puts the average home building costs in the state at $299,900. However, it’s important to note that this figure does not encompass land costs, permit fees, excavations, and other associated expenses. Depending on the type of property and customizations, the overall cost can range between $200,000 and $400,000.

Factors Influencing Building Costs

1. Framing Lumber Costs: According to Forbes Home, framing a 2,000 sq. ft. home can cost around $33,000.
2. Rising Material Costs: In recent years, material costs have seen an increase, affecting overall construction expenses.
3. Contractor Charges: Contractor fees typically range from 10% to 20% of the total construction value.
4. Electrical, Roofing, Plumbing, and HVAC Costs: These expenses can collectively add up to a significant portion of the budget.

Soft Costs in Home Construction

1. Land Cost: The average price per acre in New Hampshire is approximately $19,840. Additionally, land preparation costs can range from $1,500 to $3,000.
2. Building Permit Costs: Building permits, a crucial legal requirement for construction, can amount to around $5,000. Costs vary by county.
3. Home Interiors: Budgeting for furnishings, electronics, and other essentials should be considered, with an estimated cost of at least $20,000 for a 2,500 sq. ft. home.
4. Interior Designer Costs: If hiring an interior designer, budget around $5,400, though costs may vary based on specific requirements.

Financing Options

1. Home Construction Loan: This type of loan covers both land acquisition and home construction costs. It can be converted to a conventional mortgage after construction.
2. Construction-only Loan: Specifically for financing construction, this loan does not cover land purchase.
3. Personal Loan: While not covering the entire cost, a personal loan can be useful for financing specific aspects of construction.
4. Home Equity Loan: This applies to homeowners looking to finance a new construction based on their existing property’s equity.

Making Your Decision

Building a home in New Hampshire offers the advantage of customization and the satisfaction of owning a brand-new residence. However, it’s essential to carefully weigh the costs, time commitment, and potential complexities involved. If you own land in a desirable location, building may be a viable option. Otherwise, purchasing an existing home might provide a quicker path to homeownership.

Conclusion

The decision to build or buy a home in New Hampshire ultimately depends on your preferences, budget, and timeline. By considering the factors outlined in this guide, you can make an informed choice that aligns with your vision of a dream home in the Granite State.